Australian Dollar (AUD) Rallies amid Strong Labour Data
The number of jobs created in Australia eclipsed forecasts in July, which sent the Australian Dollar (AUD) soaring during yesterday’s trade.
Signs of a strong labour market sparked additional interest rate hike bets from AUD investors. The Reserve Bank of Australia (RBA) may have room for at least one additional hike this year as it aims to tackle inflation.
Risk appetite is likely to be the primary catalyst for movement for the ‘Aussie’ today amid a light data calendar. Could an upbeat mood support AUD?
New Zealand Dollar (NZD) Boosted by AUD Correlation
Yesterday, the New Zealand Dollar (NZD) managed to strengthen thanks to its close correlation with the ‘Aussie’.
The upside in AUD prompted NZD investors to support the ‘Kiwi’, despite a lack of macroeconomic data.
The New Zealand Dollar may see choppy trade today as investors digest the latest business PMI.
Pound (GBP) Falls amid Light Data Calendar
The Pound (GBP) fell against most major peers on Thursday, as a lack of data left GBP vulnerable to losses.
Amid the absence of data, the increasingly downbeat UK economic outlook sapped sentiment towards Sterling.
With UK data still in short supply today, Sterling may continue to be undermined by growing anxiety around the health of the British economy.
Euro (EUR) Slides as ECB Signals Final Rate Hike
Despite a surprise interest rate hike from the European Central Bank (ECB), the Euro (EUR) collapsed during yesterday’s session.
This was due to the ECB indicating that it may be at the end of its tightening cycle. The accompanying forward guidance stated that policymakers thought interest rates had likely peaked at sufficiently restrictive levels.
ECB President Christine Lagarde is set to speak tonight. Could dovish remarks see EUR fall further?
US Dollar (USD) Rises as PPI and Retail Sales Beat Forecasts
After both producer price inflation and retail sales printed above forecasts last night, the US Dollar (USD) gained ground against its peers.
The releases indicated strong consumption within the US economy despite the Federal Reserve’s aggressive policy tightening. Similarly, PPI often filters through to consumer inflation, prompting additional rate hike bets and further support for USD.
Tonight, September’s Michigan consumer sentiment index is set to print. A downtick in optimism is expected, which may dent USD.
Canadian Dollar (CAD) Rockets as Oil Prices Surge Higher
Oil prices remained on the march yesterday, further fortifying the commodity-linked Canadian Dollar (CAD).
Due to the continued absence of data releases today, oil price fluctuations are likely to remain the core catalyst of movement for the ‘Loonie’. Will crude continue to climb, lifting CAD with it?
Data Releases
Sep 15th 08:30 NZD Business NZ PMI (Aug) 46
Sep 15th 19:45 EUR ECB President Lagarde Speech
Sep 16th 00:00 USD Michigan Consumer Sentiment (Sep) 69.1